Hargreaves defends Vantage as shares dive 10%

Hargreaves Lansdown said the FSA's proposed rule changes to platforms will have "no material impact" on its business as its shares fell sharply in early trading.

The FSA said in yesterday's platform paper it wants to ban payments from fund managers to platforms and cash rebates to consumers. Hargreaves shares were down 10.7% or 62p, to 518p, at 10.30am, after a note from Citigroup warned the FSA's proposals could mean Hargreaves may need to overhaul its business model. Analysts at Citigroup said Hargreaves Lansdown's Vantage fund platform receives payments from fund managers and passes some of them on to investors as a "loyalty bonus". The broker said the change of stance from the FSA, which in an earlier consultation paper said it would al...